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Alibaba Absorbs Ele.me Escalating Retail War With Meituan And JD.com

1. Alibaba merges Ele.me into e-commerce, ending local services segment. 2. Shares rose nearly 4% following the restructuring news. 3. New strategy focuses on instant retail to compete with Meituan and JD.com. 4. Competition in instant retail has seen 50% annual growth since 2018. 5. Alibaba's e-commerce chief sees quick commerce as a huge opportunity.

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FAQ

Why Bullish?

Historically, strategic restructurings often lead to increased investor confidence, as seen after other notable mergers in tech.

How important is it?

The merger of Ele.me enhances Alibaba's competitive edge in a growing instant retail market, directly impacting its share prices.

Why Short Term?

Immediate investor reactions indicate short-term optimism, though long-term effects depend on execution.

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